1.Keep a close eye on the freight charges
As shipping fees are crucial for the successful operation of an e-commerce store, please keep a close eye on the changes in shipping fees. The major international transportation service providers update their freight rates every January.
In addition, carriers will also add surcharges during quarterly earnings periods, such as the fourth quarter, which is usually the peak holiday season during holidays. To maintain profitability during this period, you may need to include these increased shipping costs in your products or shipping fees.
- Consider the unified freight charges as much as possible
Uniform freight means that the freight is not related to the size, dimension or weight of the package. Considering a fixed-rate delivery model can help your business save on fluctuating freight charges, especially during peak periods.
When delivering the package to the last-mile distribution point, you can take advantage of fixed-rate transportation by combining the package into smaller ones. By reducing shipping costs, you can offer bulk sales to buyers, thereby increasing your profits. - Cooperate with 3PL for international transportation
The role of third-party logistics (3PL) partners is to optimize order fulfillment by reducing transportation costs and shortening delivery distances. The shipping area that measures the transportation distance of the package to the final buyer will affect your shipping cost.
Here are some ways that 3PL delivery companies like SmartDropping can reduce transportation costs;
3PL providers are experienced in product packaging. In the case of a return, you will pay less and go through the re-shipping process.
They have rich experience, so they can optimize inventory management for your business. Transport the inventory to a location closer to the buyer for quick delivery.
Flexible distribution centers in major cities around the world offer merchants the opportunity to downsize or reduce space without incurring significant operating costs. - Consider prepaid freight charges
You can reduce the freight by purchasing a large number of prepaid shipping labels from the carrier. The prepaid shipment label contains the destination address, the type of shipment, the barcode and all necessary information.
To generate a prepaid shipping label, you must pay before generation. However, if you receive the shipping label from someone else, you don’t need to pay any fees. This method enables merchants to deliver packages for free. \ - Adjust the packaging size
Your shipping cost depends on the size of the package. If you pay for the packaging, you may need to adjust the size of the packaging. If you can consolidate the goods sent to the same delivery destination, please determine which package size is the best.
Other benefits of adjusting the packaging size include:
Better protect the software package.
Customer satisfaction is achieved by demonstrating your concern for the environment and providing appropriate packaging sizes.
Reduce the carbon footprint by saving space in freight trucks. - Get discounted shipping fees
When determining how to obtain the shipping discount, please consider the following factors;
Charging weight
Understanding the dimension (DIM) weight, which uses divisor to convert the volume of a cube into weight, is essential.
Fuel surcharge
As each package will be charged a fuel surcharge based on the national standard fuel price, you can negotiate a freight discount at the contract level.
Service industry
For example, depending on the provided transportation service, you can make the next morning delivery or consider a cheaper transportation service, such as the next afternoon delivery. - Use discounted supplies
Bulk purchase of packaging boxes, polyethylene mail and fillers can save on shipping costs. Carriers such as FedEx, UPS and USPS offer discounts on certain packaging materials to small businesses. - Consider a multi-operator strategy
As a merchant, it’s very good to insist on using the first transportation company you find. However, when using multiple carriers, you may miss the opportunity to reduce the cost of your shipments.
In the absence of a dedicated carrier, you can negotiate a reduction in freight charges and enjoy other benefits, including;
Reduce transportation risks, such as when a carrier fails to deliver the buyer’s package on time. In addition, if they increase the rate, you can choose to change the operator.
Choose the right service for your e-commerce store. Some carriers are the special types of parcels they deliver. For instance, heavy and fragile items may require the carrier to equip such parcels with safety devices. - Reduce the weight of the package
The heavier the actual weight of the package is, the higher the freight will be. Some methods to reduce packages include;
Use lightweight packaging materials, such as wrapping paper or foam padding, to keep the packaging tight and lightweight.
Design customized packaging that complements the product. The closer the transport package is to the item, the less material it uses.
Use corrugated cartons. This e-commerce packaging material is stronger and lighter than cardboard boxes. - Use third-party transportation insurance
A recent survey indicates that 43.9% of the respondents hope to refund the discounted shipping fee when the buyer’s package is damaged. Depending on the product, compared with purchasing transportation insurance provided by the carrier, third-party parcel insurance can save your business transportation costs. - Check the quotations in the market where you are selling.
For instance, if you use Shopify to power your e-commerce, it has collaborated with freight carriers like UPS to offer shipping discounts to their merchants. In addition, these partnerships also integrate real-time operator rates and distribution provider applications to select the applications that suit your business.
smartdropping has integrated a standardized set of agency procurement, agency shipping and warehousing service processes, providing comprehensive service support for cross-border e-commerce sellers. Come and experience it now! Make your cross-border e-commerce journey smoother! Contact information: wechat:rongexpress.